Mahindra has started talks with some states for the production of the new electric SUV range.
London:
According to a top company official, Mahindra & Mahindra has initiated talks with various state governments in India to set up manufacturing infrastructure for the upcoming range of electric sports utility vehicles.
The automaker, which has designed five new electric sports utility vehicles (SUVs) with the first four to hit the roads between December 2024 and 2026, before finalizing the strategy for production of these EVs, was given incentives by various state governments. will evaluate.
“One of the criteria for making that decision (electric vehicle production) is the subsidy we get from the state governments. So, we are waiting to go through that process and will keep two-three options open before we go through the consolidation of our manufacturing.” Strategy,” Rajesh Jejurikar, Executive Director – Auto and Farm Sector – M&M said in an interaction here.
Without naming the states, he said that the company has started discussions with some state governments regarding the production of the new electric SUV range.
The automaker rolls out its conventional ICE (internal combustion engine) vehicles from plants in various states including Maharashtra and Tamil Nadu.
Asked whether Mahindra & Mahindra will go into production at its existing passenger vehicle manufacturing plants or look for a new plant for electric SUVs, he said, “We are open to many options. I am not saying that. That subsidy would be the only criterion but it is certainly a criterion in deciding where to build.”
“We are not concerned about whether this will be common with ICE vehicles, but we will certainly put a filter of the subsidy we receive for investment in the decision-making process,” he added.
However, Mahindra & Mahindra would prefer a state that already has a ready-made automotive manufacturing infrastructure, Mr. Jejurikar said.
“It has to be in an automotive hub. So, we’re clearly not moving into a state with no automotive ecosystem. We now have enough states with such ecosystems that can focus on attracting EV investment.” We will evaluate those three – four different options,” he said.
The automaker plans to introduce five electric SUVs under two brands – XUV and an all-new electric-only brand called ‘BE’.
The old brand will come under the XUV brand while the new electric model will be offered under the BE lineage.
Mahindra does not currently have a presence in the electric passenger vehicle segment. However, it is a leading player in the domestic electric three-wheeler space with over 70 per cent market share.
When asked about the company’s plans with regard to export of electric SUVs, Mr. Jejurikar said, “We have not yet decided on the markets, but we have started looking at all the regulatory requirements and expectations, so that the work is done now.” continues.” He added that the company is in the process of increasing the production capacity to cater to both the domestic and international markets.
“After two years if we haven’t learned from the last two years we should be held accountable for not being a good learning organization. So, we certainly won’t repeat the mistake and we’re building enough capacity to allow us to domestic and export,” he said.
Due to chip shortage and strong demand for new models from M&M like XUV700 and Scorpio-N, orders lasting almost two years for Mahindra are long overdue.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)